Fidelity's Biggest Stock Picks Going Into 2011

Included are Apple and Google. Absent are Netflix and F5 Networks.

BOSTON ( TheStreet) -- Fidelity literally means "loyalty," and that's what the largest U.S. mutual-fund company paid to its top two stock picks in 2010, as indicated by the combined $25 billion invested in Apple ( AAPL) and Google ( GOOG).

Apple, the maker of the iPad tablet and iPhone smartphone, and Internet search engine Google held down the biggest positions in a ranking of the Boston-based company's $579 billion stock portfolio at year-end for the second year in a row.

Last year, Apple was the biggest, and in 2009 it was Google, according to data collected on Fidelity's 177 equity mutual-fund portfolios, based on reports issued by the privately held firm as recently as Oct. 30, and summarized by Morningstar.

Apple had a portfolio value of $15 billion, representing 2.6% of Fidelity's investable equity assets, up 66% from 2009, an increase aided by stock purchases and Apple's 54% share-price appreciation last year. Fidelity owns 5.6% of Apple's outstanding shares, making it the largest shareholder.

Google's combined current $10 billion allocation is down 1% from 2009 to 1.7% of the portfolio, due in part to Google shares' 3.4% decline as well as some minor selling. Fidelity owns 4.5% of Google's shares and is the biggest shareholder.

The S&P 500 Index was up 15% in 2010.

A review of the top 50 stocks owned by Fidelity funds shows, most notably, that there has been big buying of a handful of high-tech firms, including Salesforce.com ( CRM), Oracle ( ORCL), eBay ( EBAY), Broadcom ( BRCM) and NetApp ( NTAP), as well as of two big oil companies, Exxon Mobil ( XOM) and Chevron ( CVX).

Among the bigger bets was online auctioneer eBay, now the 33rd largest Fidelity holding. Its valuation rose 102% in the Fidelity portfolio to $1.9 billion. The firm, with a $36 billion market values, was up 19% last year. Fidelity owns 7% of its outstanding shares, the most of any other company.

Notably absent from the top 50 stocks are two of the year's hottest S&P 500 companies: F5 Networks ( FFIV), up 150%, and Netflix ( NFLX), up 227%.

Chevron, now 0.76% of assets to rank seventh, is up from 22nd in 2009 due to a 43% rise in value to $3.6 billion, including a 19% increase in its share price.

Fast-food giant McDonald's ( MCD) has seen a 49% increase in portfolio value to $3.5 billion, giving it a ranking of eighth, up from 24th in 2009. The increase was helped by a 23% rise in its shares, and lots of buying by Fidelity.

Another firm vaulting into the top 10, due to a 34% gain in its portfolio value, was business-software provider Oracle. It has a valuation of $3.4 billion, or 0.74% of assets, giving it a ranking of ninth, up from 21st at the start of the year. Its shares advanced 28% last year.

Maintaining their top 10 rankings are banker Wells Fargo ( WFC), fourth, at 1.09%, worth $5.2 billion, a 20% decline from 2009 when it was ranked third; beverage giant Coca-Cola ( KO), fifth with a 0.92% allocation at $4.3 billion, up 10% in value from in 2009 when it ranked eighth, helped by a 14% rise in its shares; investment banker JPMorgan Chase ( JPM), is in sixth place at $4 billion, up 29% last year when its shares rose 1.3%; and computer-hardware firm Cisco Systems ( CSCM), in 10th at $3.3 billion, down 16%, hurt by its 16% share-price decline.

Among the companies that lost their top 10 status are: software giant Microsoft ( MSFT), ranked No. 5 in 2009, but 16th now, due to a 44% tumble in its investment, to $2.8 billion, including an 8.6% decline in its stock; Procter & Gamble ( PG), ninth at the end of 2009, but down to 15th now, representing a 19% decline in value to $2.8 billion even as the consumer-products maker's shares rose 6%; Hewlett-Packard ( HPQ), sixth in 2009, down to 48th last year, on a 38% drop in value to $2.6 billion, dragged down by the company's 18% share-price slide; and drugmaker Pfizer ( PFE), 10th in 2009 and 39th now, representing a 37% decline in its value to $2.2 billion, including a 3.9% decline in its share-price value.

Fidelity Management & Research is a privately owned investment manager with $1.5 trillion in assets under management as of Sept. 30. The following is a synopsis of five of the stocks in Fidelity's company-wide portfolio: